Harmonic Trading Patterns have several patterns, one among them is AB=CD, currently CNX 500 has shown a reversal from the PRZ signifying bearishness. Fresh bullishness as per the pattern would happen only if it negates the pattern above 9500, the strength of the pattern reversal would further accelerate below 9000 for its expected retrace levels as per theory...
FIBO Marked. HH HL Still intact. Price Structure Intact.
How Indian market are panning compared to US markets. US Markets Adjusted to Indian Market.
its almost a copy of nifty which is worrysome as 61.8 fib many hurdles.
Broader Index Down Since Yr 2018. Then tried to breakthrough in Jan 2020 Broader Index Seem in Uptrend now. With Above All DMA's RS Like is also Increasing.
Can most likely head to 8275-8000 zone. A very outside chance of a truncated termination around 8600 is open too.
Considering the current market scenario where the broad based indexes and the headlining Nifty 50 is behaving a bit differently, I believe Nifty 500 will provide a better picture of the market scenario. Nifty 500 broke out of a channel earlier and currently taking support on the breached resistance and EMA 34 (which has acted as a long term support). A rebound...
So this is the Nifty 500 chart, looks similar but it doesn't exactly do the same thing that Nifty 50 does. In fact I think this reflects the actual market movement more closely. Anyway, looking at the 60 min chart, we see that Nifty 500 is at one its highs. There is divergence on the MACD. We might be in the middle of a correction and there could be one move down...
1> CHANNEL RESISTANCE 2> KEY FIBO LEVELS
Seems the broader base mkt is much more sanguine.... maybe due to recent FII fire sale in front liners... Can be seen on the chart clearly
NSE:CNX500 Monthly Chart: Nifty 500 may touch 161.8% of Fibo = 9500 or it may just reverse from current "D" zone of AB=CD. Price action (Candlestick pattern etc) to be watched closely. First support 7500. Next resistance (200% Fibo Extension) @ 10800. This level comes to play only if Nifty 500 crosses 9500 & holds for a month.